This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Intel Is Providing a Buying Opportunity Right Now

Stocks in this article: INTC AMD QCOM ARMHAAPL

NEW YORK (Best Credit) -- Over the last year, Intel (INTC) has shown some impressive rallies, rebounding nicely from its sub-$24 lows in January to its recent peaks in the $35 range. Shares currently trade around $33 and are up nearly 27% for the year to date.

Given the overall strength of the personal computer industry, moves like these have been met with some degree of skepticism by some sections of the analyst community.  But relative to its competition, Intel still has a firm hold on its position as the world's leading semiconductor producer and this was largely validated by the positive earnings reports released last month.  That's one of the reasons I think the stock could be a buying opportunity now.


Courtesy of CornerTrader

Read More: California AG Seeks Bigger Slice of Morgan Stanley Mortgage Fines

With the stock trading at such elevated levels, it should be remembered that near-term challenges clearly exist for those with long positions and there are still questions going forward about whether or not the company can continue expanding at its current rate.  But a recent manufacturing agreement with Panasonic and strong evidence of expansion in developing markets strengthens the case for the positive outlook.

Prospects for Continued Strength

Intel has become the brand to beat in a wide variety of sectors within the industry.  Intel continues to place most of its focus on designing and  manufacturing computer components (and related products), with more and more attention being placed on the development and designing of platforms in the smartphone market segment.  Key competitors include Advanced Micro Devices (AMD) and Qualcomm (QCOM), which have also shown some positive fundamental signals in recent quarters but have failed to generate rallies like the one seen in Intel, whose earnings are detailed in the chart below.

Macintosh HD:Users:artemiu5:Desktop:  2014-07-31  02.56.29.png

Read More: Jeff Bewkes Flexes Muscles as Rupert Murdoch Tries to Save Face

Intel has also benefited from its dedication to elevated R&D expenditures (20.2% of total sales in  2013), which aids the company in meeting its rigorous production schedules.  Intel introduces new processor technology during odd years and new architecture directions during even years.  Intel's ability to meet these timelines create the framework for enhanced competitive advantage going forward.  

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.66 +9.43 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs